Rectangle Pattern
Price oscillates between two horizontal parallel levels — a neutral consolidation that resolves in either direction, often continuing the prior trend.
A Rectangle forms when price bounces repeatedly between a flat resistance line and a flat support line, creating a sideways box. Neither buyers nor sellers dominate.
The breakout direction is typically a continuation of the pre-rectangle trend. Target = the height of the rectangle projected from the breakout or breakdown point. Volume should surge significantly on the break.
- In trending markets, rectangles are pause-and-continue patterns.
- Long rectangles spanning many weeks can also signal accumulation or distribution — context matters.
Related Terms
Ascending Triangle
A coiling pattern with a flat upper resistance line and rising lower trendline, typically resolving in a bullish breakout.
BeginnerBreakout Retest
Price returning to test the former breakout level after the initial break — a resistance-turned-support confirmation and lower-risk entry point.
BeginnerContinuation Pattern
Any pattern that forms mid-trend and resolves in the same direction as the prior move — flags, pennants, and triangles are the most common.
BeginnerMeasured Move
A technique projecting a price target by duplicating a prior swing move from a breakout or consolidation point.
BeginnerSymmetrical Triangle
Converging trendlines with lower highs and higher lows, signalling a coil of indecision that typically breaks in the direction of the prior trend.
Beginner